New
energy vehicles will dominate the world’s largest auto market in about ten
years, two executives from major Chinese electric car companies predicted over
the weekend.
New
energy vehicles refer to battery-powered and hybrid cars. The category
accounted for more than 10% of new car sales in China in March, and grew to
11.4% in May, said Wang Chuanfu, founder of BYD.
He
forecast that the penetration rate would surge to more than 70% in 2030. That’s
according to a transcript the company provided of his remarks at the China Auto
Chongqing Summit held June 12 and 13.
William
Li, founder and CEO of electric car start-up Nio, was more optimistic. He
predicted that so-called smart electric cars would account for 90% of new car
sales in 2030, according to Chinese media reports.
Nio
did not have anything to add when contacted by CNBC. The U.S.-listed automaker
leads its start-up peers in terms of monthly deliveries.
But
Nio’s deliveries of 6,711 cars in May fell from 7,102 in April, remaining well
below that of BYD.
In
May, BYD said its new energy passenger car sales rose 23% from the prior month
to 31,681 vehicles, of which just over half — or 18,711 — were powered only by
batteries.
The
company’s Han sedan ranks among the five best-selling new energy vehicles sold in
China — just behind Tesla’s Model 3 and Model Y for the first five months of
the year, according to the China Passenger Car Association.
In
first place is a budget electric car, the Wuling Hongguang Mini, developed
under a General Motors’ joint venture in China.
Chinese
brands to dominate
Many
foreign automakers such as Volkswagen have looked to launch electric cars in
China first, where sales of battery-powered vehicles have gotten a boost from
central government subsidies and other preferential policies.
Beijing
would like 20% of new cars sold to be new energy vehicles by 2025.
As
the local new energy vehicle market grows, BYD’s Wang said he expects Chinese
car brands will be able to account for 60% by 2030, thanks partly to their
grasp of core technology.
